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White House pauses federal grant, loan other assistance programs
The memo referenced the executive orders, including those seeking to dismantle programs related to diversity, equity and inclusion (DEI), President Donald Trump has signed since taking office last week.
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US President-elect Donald Trump takes the oath of office as Melania Trump, Ivanka Trump, Donald Trump Jr. and Eric Trump look on during inauguration ceremonies in the Rotunda of the US Capitol on Monday, January 20, 2025 in Washington, DC. Donald Trump takes office for his second term as the 47th president of the United States. (Pool via Reuters/Chip Somodevilla)
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he Trump administration has temporarily paused grant, loan and other financial assistance programs at the Office of Management and Budget, according to a memo seen by Reuters, prompting criticism from congressional Democrats.
The memo referenced the executive orders, including those seeking to dismantle programs related to diversity, equity and inclusion (DEI), President Donald Trump has signed since taking office last week.
"In the interim, to the extent permissible under applicable law, federal agencies must temporarily pause all activities related to obligation or disbursement of all federal financial assistance, and other relevant agency activities that may be impacted by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal," Matthew J. Vaeth, the acting director of the Office of Management and Budget, wrote in the memo.
The suspension goes into effect on Jan. 28 at 5 p.m. eastern time, according to the memo.
Top Democratic congressional budget appropriation lawmakers responded to reports of the memo by sending a letter demanding the OMB reverse its decision.
"The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country. We write today to urge you in the strongest possible terms to uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law,” Democratic Senator Patty Murray and Democratic Representative Rosa DeLauro wrote.
Agencies have until Feb. 10 to submit detailed information on any programs, projects or activities subject to the pause, the memo states.
The suspension will provide the administration with time to review agency programs and determine the best uses of funding for those programs consistent with the law and Trump's priorities, it added.
Agencies must identify legally mandated actions or deadlines for assistance programs before completing the analysis, it added.
Vaeth directed federal agencies to halt all activities associated with open notices of funding opportunities.
"This memorandum requires federal agencies to identify and review all federal financial assistance programs and supporting activities consistent with the president's policies and requirement," Vaeth wrote.
